CNE financed this new equipment purchase through a combination of debt and equity. On January 1st, CNE received a $800, 000 loan from a commercial bank at 5% interest. Starting on February 1 st principal and interest payments of 11, 700 are to be paid on a monthly basis over 7 years. Also, in January CNE issued $750, 000 of common stock. In this offering, 100, 000 shares were issued at a par value of $3 per share. Using an amortization schedule, in the month of April, what will be CNE Inc. interest payment on its $800, 000 loan? In the month of April what is the remaining dollar amount balance on CNE Inc.'s loan?

Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. The bonds have a 5.50% stated rate of interest interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice O Zero and $40,700 $40,700 and $40,700 Zero and Zero $40,700 and Zero

Texon Corporation had 8 million shares of common stock outstanding during the current calendar year. On January 1, Texon issued ten thousand $1,000 face value, convertible bonds. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannually for 20 years. They have a stated rate of 12%. Texon had income before tax of $24 million and a net income of $18 million. The income tax rate is 25%. Texon would report the following EPS data (rounded): BASIC EPS Diluted EPS A. $ 2.25 $ 2.24 B. $ 2.25. $ N/A Antidulutive C. $2.25 $ 2.22 D. $2.25. $ 2.25 O Option A O Option B O Option C O Option D SHOW WORK THANKS

The Delgado Software Corporation is authorized to issue 80,000 ordinary shares. During the current year, the corporation issued 25,000 shares. Required: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares have a P5 par value and were sold for P20 per share. 2. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 3. The shares are no-par and have no stated value. They were issued at P25 per share.

On February 3, Year 1, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $5 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, Year 1. The stock will be issued to each subscriber upon full payment.  The May 3 receipt of the full remaining balance from subscribers. The market price is currently $16 per share

CNZ Co. had 1,270,000 shares outstanding at the beginning of the year—1 June 20X8. During the year, the following transactions occurred: 1 August 20X8—5,700 share options with an exercise price of $42 per share, were exercised. 1 October 20X8—A 5:1 stock split was completed. 1 February 20X9—The company repurchased 507,000 shares for $27 each. For the year ended 31 May 20X9, the company reported net earnings of $1,726,500. Required:Compute the basic EPS for the company for the year ended 31 May 20X9. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic EPS =

Huntington Power Co. has issued following three securities as its long-term source of capital.  Calculate the weights of each source of capital (kd, kp, ke). Debt: 2,500 bonds outstanding, current market price of the bond is $1,080.  Preferred Stock: 3,000 shares outstanding, selling for $98. Common Stock: 60,000 shares outstanding, selling for $55 per share.     a. 42.90%; 4.67%; 52.43%   b. 45.63%; 1.72%; 59.67%   c. 42.90%; 4.67%; 55.71%   d. 59.67%; 5.08%; 35.24%   e. 45.63%; 1.72%; 52.65%   f. 42.90%; 2.23%; 52.14%

A company issues 20,000 common shares for $15 each. Later in the year, the same company issues another 35,000 common shares for $27 each. Two weeks later, it repurchases 5,000 shares for 19 per share. The entry to record the repurchase would be which of the following? Debit Cash for $95,000 & Contributed Capital - Retirement of Common Shares for $18,200, credit Common Shares for $113,200. Debit Common Shares for $95,000 & Retained Earnings for $18,200, credit Cash for $113,200. Debit Common Shares for $95,000, credit Cash for $95,000. Debit Common Shares for $113,200, credit Contributed Capital - Retirement of Common Shares for $18,200 & Cash for $95,000.

In 2007, Xero Ltd. offered a subscription of 15 million shares at an offer price of $1.00 per share with the ability to accept oversubscriptions of up to $3 million. The prospectus detailed the requirement that all applications must be accompanied by payment in full for the total number of shares applied for and stated that application monies will be banked upon receipt into a designated bank account and held on trust pending the allocation of shares. Required: Assuming all 18 million shares were applied for, prepare the journal entry to record the receipt of application monies.  Apart from recording a cash inflow, explain whether Xero should also record another asset, a liability, revenue or an expense upon collection of application monies, and explain why.

At the beginning of the year, UNIVERSE Company decided to raise additional capital by issuing 8,000 of₱1,000 face amount 5-year bonds with interest rate of 12% payable semi-annually on June 30 andDecember 31. To help the sale of the bonds, share warrants are issued – one warrant for each ₱1,000bond sold. The warrant entitles the holder to purchase five shares at ₱85 per share. The par value ofthe share is ₱50. It is reliably determined that the value of the warrants is ₱25 each at the time of theissuance of the bonds. The bonds are sold at 110 with warrants. The market rate of interest for similarbonds without the warrants is 14%. On December 1, 2021, half of the warrants are exercised and therest expired. The following present value factors are made available:   Prepare all entries for 2021.Compute or provide the answers for the following:26. What is the issue price of the bonds without warrants?27. What is the equity component upon initial recognition?28. How much is the premium or…